Build Eyeballs, Collect Ads
                                                                                                                                                                                                     
August 21, 2006
Copyright Mediaware Infotech Pvt. Ltd.
Eighteen month old YouTube.com has just launched paid videos on its home page. With the option to create special channels (read video clip galleries) for each advertiser / brand.

And top music label Warner Brothers Records is the first advertiser to use YouTube's special "channel" - with a video promotion for Paris Hilton's new music album.

What's interesting is that Warner Bros' special channel also hosts ads of other brands - for which ad revenue is reportedly to be shared between YouTube & Warner Bros. (And particularly interesting is a promo. for competitor Fox Network's new "Prison Break" TV series which is hosted on Warner Bros' special channel! )

Collaborative Model
Not that YouTube is new to hosting ads on its site. But so far, these were the standard display/banner/text ads. Also, earlier this year YouTube did host what looked like paid promos. for NBC Network's newly launched TV shows.

But with the Warner Bros. deal, YouTube is clearly looking to ride on the advertiser's brand equity to attract other advertisers to YouTube.com. A sort of collaborative model along the lines of (but distinct from) the "Google Adwords" model.

Two points are worth mentioning. One, the Google network has taken many years to establish - in comparision, YouTube has succeeded in building a loyal viewer base in one year. And two, while the paradigm of "Build Eyeballs, Collect Ads" is not new, the "Online Video Clips" route for building a large, viewer base is certainly unique.

Welcome to the world of online video clip culture!

Privacy Woes
Is it a mistake for search engines like Google, Yahoo, AOL, MSN to save data related to search queries? One thing is clear: because of privacy issues, the liabiliy of unauthorized exposure is enormous. (And the bigger the database, the more the risk.)

A couple of weeks ago, the research team at AOL decided to host data pertaining to all the search queries of over 650,000 AOL members for the quarter March - May 2006. The data comprised of every single query. It included all search topics like names, social security numbers, addresses and other information keyed in by AOL members. Although AOL tried to "cover up" the identity of members by replacing with a number, the identity of each user could be quite easily guessed from the details available in the queries.

To prove this, a journalist from the New York Times successfully traced the data of a user (code no 4417749) by going through the query data published. Search topics for this user included “numb fingers”, “60 single men”, “dog that urinates on everything”, “landscapers in Lilburn, Ga,” and several people with the last name Arnold. With a little effort, the data trail easily led to 62 year-old widow & AOL member Thelma Arnold, who lives in Lilburn, Ga.

Following this incident, AOL has immediately removed the offending data from its site. (Unfortunately, there are hundreds of downloaded copies being circulated on the Web.) Its Chief Technology Officer resigned. (There was clearly no malafide intention on her part as the data was meant to help improve the understanding of search engine functioning.) And in a damage-repairing exercise, AOL has announced serious privacy & data access policies for its employees. (Along with I'm sure, Google, Yahoo & the whole bunch ! )

But the most significant part of this incident is the reminder that "central server based databases" are inherently susceptible to exposure. Whether it is with malafide intentions (as in the recent cases of BPO executives misusing customer data) or a genuine mistake, the aggregation of huge amounts of "sensitive" data on central servers will always pose a risk. And the bigger / more sensitive the data, the higher the risk.

Welcome to the century of data security concerns!

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